Guide to Understanding KoinX's Taxes Page

Navigating the complex world of cryptocurrency taxation can be daunting, especially when gains, losses, and regulatory nuances are involved.

KoinX simplifies this process by offering a detailed crypto tax report that breaks down every component—from TDS to capital gains—ensuring you have a complete picture of your tax obligations.

Let’s make you understand how we do that.

1. Tax Deducted at Source (TDS) Overview

KoinX’s TDS section provides a visual representation of tax deductions made across your integrated exchanges. Key highlights include:

Clear Chart View

See at a glance how tax obligations are managed across various exchanges. For example, WazirX shows a TDS deduction of ₹4.23, while exchanges like Kucoin, Binance, Bybit, and Gate.io reflect ₹0.00 for this fiscal year.

Expert Advice Reminder

While the chart gives you a quick overview, it’s crucial to consult with your tax expert to ensure every detail is accurate and compliant.

2. Monthly Realized Gains and Losses

Tracking your monthly performance is essential to understanding your trading outcomes. The report includes:

Total Realized Gains

• ₹2.03L overall gains, with significant spikes in March (₹1.83L) and November (₹17,239.71).

Total Realized Losses

• ₹10,502.14 overall losses, notably in November (₹4,897.20) and March (₹4,446.15).

This month-by-month breakdown helps you pinpoint key trading periods and assess performance trends over the fiscal year.

3. Crypto Tax Summary

This section provides a detailed breakdown of your taxable gains, making it easier to compile your Income Tax Returns (ITR).

Capital Gains

• ₹2.02L
• This is the profit made from selling or trading cryptocurrencies. It’s crucial to note that this figure is derived from the difference between the purchase price and the selling price of your assets.

Derivatives Gains

• ₹0.00
• Derived from trading derivatives (such as options, futures, and swaps). A negative value here would indicate overall losses in derivatives trading.

Other Gains

• ₹277.82
• This includes earnings not directly related to the buying and selling of assets, such as:
  • Staking Rewards: Earnings from holding or staking cryptocurrencies.
  • Airdrops: Free tokens distributed as part of a promotion or network upgrade.
  • Interest Earnings: Income from lending your cryptocurrency.
  • Mining Rewards: Earnings from mining activities.

Total Taxable Gains

• Combined, your taxable gains sum up to ₹2.03L.

Before finalizing your tax report, ensure that any pending issues such as "Insufficient Quantity" or "Missing Price History" are resolved.

4. Realized Gains/Losses by Coins and Category

For a more granular view, the report breaks down performance by individual coins and categories:

By Coins

• SHIB: Gains of ₹51,528.99 and a loss of ₹5,392.80.
• SOL: Gains of ₹47,688.70.

By Category

• The capital category shows the highest gains at ₹2.02L, while the “Other” category registers a modest gain of ₹277.82.

This detailed breakdown ensures that both novice and experienced traders can easily understand their financial performance and tax liabilities.

Get started with KoinX to effortlessly manage and review your crypto taxation details, ensuring every transaction is accounted for and every tax benefit is maximized!